Landlords in most areas saw their rental yields drop in Q2 at a time when many were considering their future investments.

Introduction of the Renters’ Rights Act in May prompted many property investors to think about whether to sell up.

Now, new figures from Fleet Mortgages reveal average rental yields rose across England and Wales compared to the same time last year, but the majority of regions experienced a short-term dip.

Landlords active

Steve Cox, Chief Commercial Officer at Fleet Mortgages (pictured), says: “Our figures continue to show professional landlords remain active.

“Purchase activity has picked up, portfolio landlords continue to expand where opportunities exist and limited company borrowing remains the preferred route for most investors. Those are all positive indicators for the underlying strength of the buy-to-let sector.”

Six out of 10

Six out of 10 regions saw a quarterly drop, according to buy-to-let specialist lender’s latest Buy-to-Let Rental Barometer.

Average yields rose by 0.3% annually to 7.8%, but there was a fall from 8.1% in Q1.

The North East region continues to lead with annual rental yields up by 0.5%, however quarter-to-quarter it too has seen a fall of 0.6% to 9.2%.

Outperform

Meanwhile, the North West has moved into second spot with an average rental yield of 8.8% and six regions continue to hold above 8%, with the other four being Yorkshire & Humberside, Wales, and both the East and West Midlands.

Higher-yielding areas in the North and Midlands are continuing to outperform the South, with Wales and the South West seeing an annual fall.

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